Study on Capital Buffer Behaviors under Fluctuations of Macro-economy Evidence from 45 Commercial Banks in China
Read
DownLoad |
| Title | Study on Capital Buffer Behaviors under Fluctuations of Macro-economy Evidence from 45 Commercial Banks in China
|
| Author | Xian Huang and Qiyue Xiong |
| Organization | School of Economics and Management, Wuhan University |
| Email | hxian@whu.edu.cn,happybearcharles3@whu.edu.cn |
| Key Words | Fluctuations of Macro-Economy; Capital Buffer; Bank Characteristics |
| Abstract | It is of great significance for the stability of China’s economy to enforce the robustness of the bank sector and alleviate the side influences of their pro-cyclical behaviors. This paper analyzes the banks’ capital buffer behaviors under fluctuations of macro-economy, and conducts corresponding empirical tests by use of an unbalanced panel with 45 commercial banks from the year 2000 to 2010. The results show that China’s bank sector takes on a counter-cyclical capital buffer behavior, and the capital buffers are mainly built up through increasing the capital asset ratio, besides, state-owned and big banks give out a weaker counter-cyclical capital buffers behaviors than the other banks. |
| Serial Number | WP301 |
| Time | 2012-07-13 |
|